Assembly endorsement for social economy
agendaNi summarises the Stormont parties’ commitments to the sector.
All parties in the Executive have highlighted the benefits that the social economy can provide – and the need to support the sector – in their Assembly manifestos and other policy papers since the 2010 general election.
The DUP manifesto committed the party to “boosting funding and procurement opportunities for social enterprises”. Progress against this commitment is hard to measure due to the lack of centrally published data.
The Department of Enterprise, Trade and Investment has publicised the Larne Enterprise Development Company’s Advance programme for supporting social entrepreneurs. It also chairs a social economy policy group within the Civil Service.
Support for hosting an international conference on social enterprise was also pledged although this has not yet taken place.
The DUP placed a high importance on ‘social impact bonds’ whereby the private and voluntary sector signed outcomes-based contracts with government and took on responsibility for certain services.
Finance Minister Simon Hamilton has tasked the Department of Finance and Personnel with developing social impact bonds. He particularly wanted to see projects that would tackle alcoholism, drug addiction, homelessness, chronic criminal behaviour, poor public health and under-achievement in education.
Social enterprises, he said, “do exceptional work to a very high standard and frequently cost far less than similar but less effective services provided by the public sector.” He added: “They are a growing part of our economy and are dealing with social issues in ways in which government simply isn’t able to.”
Sinn Féin’s fiscal proposals include seeking an agreement with the credit union movement to set up a £100 million social fund. This would provide finance for “indigenous business[es] with social outcomes based on objective need.”
A separate Executive investment fund would have a “major focus” on investing in social enterprises, as well as SMEs, new technologies, tourism and manufacturing exporters. The party would also consider tax breaks and incentives for the social economy, including the use of enterprise zones.
It is, though, unable to implement these plans as the relevant departments are held by DUP ministers and most fiscal powers remain at Westminster. The DUP and Sinn Féin have set up the Social Investment Fund – overseen by OFMDFM – although progress on releasing funds has been slow.
The UUP said that the social economy “has the power … to liberate those currently shackled in the poverty trap.” Its policy programme, set out after Mike Nesbitt’s election as leader, adds that the social economy “can flourish during economic hardship” by reaching people who are most in need and “bringing about positive social change through re-investment of profit back into local communities.”
While the SDLP manifesto does not refer to the social economy, its alternative Budget in 2010 saw the potential for outsourcing public services to social enterprises and proposed a £2 million fund to support the sector.
In its manifesto, the Alliance Party backed the creation of a ‘social enterprise equity fund’ for start-ups and growing enterprises and sought more opportunities for the sector to gain public procurement contracts. Regulation and audit requirements for social enterprises needed to be “reasonable and proportionate”.
The minor parties in the Assembly have no specific manifesto commitments on the social economy although Green Party leader Steven Agnew and NI21 MLA John McCallister have voiced their support for the sector during debates in the House.
